LONDON--Tangiers Petroleum Ltd. (TPET.LN) Monday said the
operator of the TAO-1 exploration well offshore Morocco estimated
an indicative drilling budget of $75 million, and also said it
wants to raise funds to guard against the chance of Tangiers being
unable to fund its share of drilling costs.
MAIN FACTS:
-The estimate from Galp is subject to a +/- 25% variance
-Operator estimates TAO-1 to spud mid to late June
-Tangiers to pay 33% of drilling costs above Galp's $33 million
cap
-Sees risk that Tangiers may face a well funding commitment
which isn't covered by current funds
-Based on the indicative budget, Tangiers could face a shortfall
of up to $6 million
-Could then default on JV agreement, possibly forfeiting some or
all of its Tarfaya Offshore Block interest
-Given current funding capacity of AUD15M, board wants to raise
capital
-Shares unchanged at 0732 GMT
Write to Ed Ballard at ed.ballard@wsj.com
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